| Wed 3 Mar 2004, 16:50 | | Interim results for 6 months ended 31 Dec 03 |
|
APLITEC - REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2003
NET1 APPLIED TECHNOLOGY HOLDINGS LIMITED
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
REGISTRATION NUMBER 1997/007207/06
SHARE CODE: APL
ISIN: ZAE000024113
"APLITEC"
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2003
WWW.APLITEC.CO.ZA
HIGHLIGHTS: REVENUE UP 26% TO R391 MILLION
OPERATING PROFIT UP 46% TO R117 MILLION
HEADLINE EARLINGS PER SHARE UP 24% TO 32.46 CENTS
TANGIBLE NET ASSET VALUE PER SHARE, 233.55 CENTS
CASH AND CASH EQUIVALENTS, R493 MILLION
ABRIDGED INCOME STATEMENT REVIEWED AUDITED
SIX MONTHS ENDED YEAR ENDED
31 DECEMBER 30 JUNE
2003 2002 % 2003
R000 R000 CHANGE R000
REVENUE 390 742 310 834 25.7 691 484
OPERATING PROFIT 116 881 80 058 46.0 186 092
NET INTEREST RECEIVED 11 160 13 487 (17.3) 23 546
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128 041 93 545 36.9 209 638
PROVISION FOR TRANSACTION COSTS 7 000 - - -
SETTLEMENT OF SHARE OPTIONS - 5 349 - 5 349
PROVISION FOR LOSS ON LOAN 4 875 - - 4 875
PROFIT BEFORE TAX 116 166 88 196 31.7 199 414
TAX EXPENSE 42 740 31 349 36.3 69 132
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CURRENT AND DEFERRED 36 297 28 139 36.1 65 992
STC 4 443 3 210 38.4 3 210
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PROFIT AFTER TAX 73 426 56 847 29.2 130 282
MINORITY INTERESTS - 2 494 - 4 095
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NET PROFIT FOR THE PERIOD 73 426 54 353 35.1 126 187
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HEADLINE EARNINGS PER SHARE (CENTS) 32.46 26.21 23.8 58.57
DILUTED HEADLINE EARNINGS
PER SHARE (CENTS) - 26.00 - -
EARNINGS PER SHARE (CENTS) 30.98 23.46 32.1 53.25
DILUTED EARNINGS PER SHARE (CENTS) - 23.26 - -
WEIGHTED AVERAGE NUMBER
OF SHARES (`000) 236 977 231 671 236 977
DILUTED NUMBER OF SHARES (`000) 236 977 233 687 236 977
RECONCILIATION OF HEADLINE EARNINGS
NET PROFIT FOR THE PERIOD 73 426 54 353 126 187
AMORTISATION OF GOODWILL 3 508 877 7 393
(PROFIT) / LOSS ON DISPOSAL OF
PROPERTY, PLANT AND EQUIPMENT (1) 148 (139)
SETTLEMENT OF SHARE OPTIONS - 5 349 5 349
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HEADLINE EARNINGS 76 933 60 727 138 790
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ABRIDGED BALANCE SHEET REVIEWED REVIEWED AUDITED
31 DECEMBER 31 DECEMBER 30 JUNE
2003 2002 2003
R000 R000 R000
ASSETS:
NON-CURRENT ASSETS 95 444 76 116 96 050
PROPERTY, PLANT AND EQUIPMENT 63 241 55 981 65 075
CAPITALISED DEVELOPMENT COSTS - 903 -
GOODWILL 8 535 13 498 12 043
DEFERRED TAX 23 668 5 734 18 932
CURRENT ASSETS 637 042 449 172 586 478
INVENTORY 5 745 12 870 6 437
TRADE AND OTHER RECEIVABLES 138 543 121 693 151 492
CASH AND CASH EQUIVALENTS 492 754 314 609 428 549
_______________________________
TOTAL ASSETS 723 486 525 288 682 528
_______________________________
EQUITY AND LIABILITIES:
CAPITAL AND RESERVES 561 999 447 113 524 120
ISSUED SHARE CAPITAL AND PREMIUM 134 734 129 561 134 734
ACCUMULATED PROFIT 427 265 317 552 389 386
MINORITY INTERESTS - 5 769 -
CURRENT LIABILITIES 170 487 72 406 158 408
TRADE AND OTHER PAYABLES 108 520 43 977 107 474
TAX 61 967 28 429 50 934
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TOTAL EQUITY AND LIABILITIES 732 486 525 288 682 528
_______________________________
SHARES IN ISSUE(`000) 236 977 233 464 236 977
TANGIBLE NET ASSET VALUE
PER SHARE (CENTS) 233.55 185.34 216.09
NET ASSET VALUE PER SHARE (CENTS) 237.15 191.51 221.17
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ABRIDGED STATEMENT OF CHANGES IN EQUITY REVIEWED AUDITED
SIX MONTHS ENDED YEAR ENDED
31 DECEMBER 30 JUNE
2003 2002 2003
R000 R000 R000
ORDINARY SHAREHOLDERS" EQUITY AT
BEGINNING OF PERIOD 524 120 418 455 418 455
CHANGES IN SHARE CAPITAL:
SHARES ISSUED - - 4
CHANGES IN SHARE PREMIUM: - (14) 5 155
SHARES ISSUED - - 5 179
SHARE ISSUE EXPENSES WRITTEN OFF - (14) (24)
CHANGES IN ACCUMULATED PROFIT: 37 879 28 672 100 506
NET PROFIT FOR THE PERIOD 73 426 54 353 126 187
DIVIDENDS PAID TO SHAREHOLDERS (35 547) (25 681) (25 681)
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ORDINARY SHAREHOLDERS" EQUITY AT
END OF PERIOD 561 999 447 113 524 120
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ABRIDGED CASH FLOW STATEMENT REVIEWED AUDITED
SIX MONTHS ENDED YEAR ENDED
31 DECEMBER 30 JUNE
2003 2002 2003
R000 R000 R000
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIPTS FROM CUSTOMERS 408 894 302 359 665 211
CASH PAID TO SUPPLIERS AND EMPLOYEES (270 192)(236 562) (434 627)
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CASH GENERATED FROM OPERATIONS 138 702 65 797 230 584
NET INTEREST RECEIVED 11 161 13 487 23 546
TAX PAID (36 442) (28 014) (56 491)
DIVIDENDS PAID (35 547) (25 681) (25 681)
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CASH FLOWS FROM OPERATING ACTIVITIES 77 874 25 589 171 958
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CASH FLOWS FROM INVESTING ACTIVITIES:
ADDITIONS TO PROPERTY, PLANT
AND EQUIPMENT (13 798) (33 422) (60 791)
PROCEEDS FROM DISPOSAL OF PROPERTY,
PLANT AND EQUIPMENT 129 643 2 841
PURCHASE OF MINORITY INTERESTS - - (12 432)
________________________________
CASH UTILISED IN INVESTING
ACTIVITIES (13 669) (32 779) (70 382)
________________________________
CASH FLOWS FROM FINANCING ACTIVITIES:
PROCEEDS FROM ISSUE OF SHARE CAPITAL - (14) 5 159
NET INCREASE/(DECREASE) IN CASH AND
AND CASH EQUIVALENTS 64 205 (7 205) 106 735
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 428 549 321 814 321 814
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CASH AND CASH EQUIVALENTS
AT END OF PERIOD 492 754 314 609 428 549
_______________________________
CASH EQUIVALENT EARNINGS PER SHARE
(CENTS) 37.01 30.57 65.00
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SEGMENTAL ANALYSIS
THE ESTIMATED PROPORTIONS OF CONSOLIDATED REVENUE AND PROFIT BEFORE TAX
ATTRIBUTABLE TO THE VARIOUS CLASSES OF BUSINESS WERE AS FOLLOWS:
REVENUE PROFIT BEFORE TAX MARGIN
6 MONTHS ENDED 6 MONTHS ENDED 6 MONTHS ENDED
31 DECEMBER 31 DECEMBER AS AT 31 DECEMBER
2003 2002 2003 2002 2003 2002
R000 R000 R000 R000 % %
FTS/ 7 351 4 860 6 474 3 983 88 82
UEPS
LICENCE
FEES
UEPS 5 513 2 132 3 308 1 279 60 60
SOFTWARE
SALES
UEPS 17 087 56 895 4 613 15 362 27 27
HARD-
WARE SALES
UEPS 86 060 60 573 39 118 17 898 45 30
PROCES-
SING FEES
MANAGE- 23 627 16 630 9 451 6 652 40 40
MENT
SERVICES
FINAN- 56 666 60 503 14 182 10 981 25 18
CIAL
SERVICES
SOCIAL 184 264 102 319 40 776 25 452 22 25
SECURITY
OPERA-
TIONAL
FEES
SOCIAL 10 174 6 922 1 590 1 081 16 16
SECURITY
PRE-
FUNDING
INTEREST - - 11 160 13 487
EARNED
UNALLO- - - (14 506) (7 979)
CATED
CORPORATE
ITEMS
_______________________________________________________________
390 742 310 834 116 166 88 196 30 28
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NOTES:
ACCOUNTING POLICIES
THE FINANCIAL STATEMENTS HAVE BEEN PREPARED ON THE HISTORICAL COST BASIS AND IN
CONFORMITY WITH STATEMENTS OF GENERALLY ACCEPTED ACCOUNTING PRACTICE. THE
ACCOUNTING POLICIES APPLIED IN THE PREPARATION OF THE FINANCIAL STATEMENTS ARE
CONSISTENT IN ALL MATERIAL RESPECTS WITH THOSE APPLIED IN THE ANNUAL FINANCIAL
STATEMENTS FOR THE YEAR ENDED 30 JUNE 2003.
REVIEW REPORT
THE RESULTS HAVE BEEN REVIEWED BY FISHER HOFFMAN PKF (JHB) INC. AND THEIR
UNQUALIFIED REVIEW OPINION IS AVAILABLE FOR INSPECTION AT THE COMPANY"S
REGISTERED OFFICE.
COMMENTARY
THE BOARD OF APLITEC TAKES PLEASURE IN PRESENTING THE INTERIM RESULTS OF THE
GROUP FOR THE SIX MONTHS ENDED 31 DECEMBER 2003. APLITEC HAS ACHIEVED SOLID
GROWTH AND CONTINUED TO DEMONSTRATE ITS ABILITY TO PROVIDE AN AFFORDABLE
FINANCIAL TRANSACTING SYSTEM TO THE UN-BANKED AND UNDER-BANKED PEOPLE OF SOUTH
AFRICA AND OTHER DEVELOPING COUNTRIES.
BUSINESS REVIEW
REVENUE INCREASED BY 26% FROM R311 MILLION TO R391 MILLION AND PROFIT BEFORE TAX
INCREASED BY 32% FROM R88 MILLION TO R116 MILLION. NET PROFIT INCREASED BY 35%
FROM R54 MILLION TO R73 MILLION. EARNINGS PER SHARE INCREASED BY 32% TO 30.98
CENTS AND HEADLINE EARNINGS PER SHARE ROSE BY 24% TO 32.46 CENTS.
THE RESULTS FOR THE SIX MONTHS UNDER REVIEW INCLUDE THE FOLLOWING SIGNIFICANT
ITEMS:
* THE IMPLEMENTATION OF THE EASTERN CAPE SOCIAL SECURITY PAYMENT CONTRACT HAS
RESULTED IN A LOSS OF APPROXIMATELY R15 MILLION, MAINLY AS A RESULT OF THE
DELAYED TRANSFER OF DISTRICTS BY THE EASTERN CAPE PROVINCIAL GOVERNMENT. THE
EASTERN CAPE GOVERNMENT HAS AGREED THAT ALL DISTRICTS WILL BE TRANSFERRED TO
APLITEC BY 1 MAY 2004 WHEREAFTER OUR ENDEAVOURS IN THE PROVINCE SHOULD BE
PROFITABLE.
* AN AMOUNT OF R7 MILLION HAS BEEN PROVIDED FOR COSTS RELATING TO THE DELISTING
AND VOLUNTARY LIQUIDATION OF THE COMPANY, AS APPROVED BY THE SHAREHOLDERS ON 9
DECEMBER 2003.
* AN AMOUNT OF R9.75 MILLION WAS ADVANCED AS A LOAN TO AN EMPOWERMENT PARTNER.
AN AMOUNT OF R4.875 MLLION WAS PROVIDED AGAINST THIS LOAN AT 30 JUNE 2003 AS THE
REPAYMENT TERMS HAD NOT BEEN MET. THIS LOAN HAS NOW BEEN PROVIDED FOR IN FULL AS
THE BALANCE OF R4.875 MILLION WAS PROVIDED FOR DURING THE PERIOD UNDER REVIEW.
* INCLUDED IN ACCOUNTS RECEIVABLE IS AN AMOUNT OF R11.4 MILLION PAID INTO A
TRUST ACCOUNT AS THE FULL PURCHASE CONSIDERATION FOR THE ACQUISITION OF APLITEC
AND AN EMPOWERMENT PARTNER OF UP TO 95% OF THE ISSUED SHARE CAPITAL OF NEW ERA
LIFE INSURANCE COMPANY LIMITED. THIS ACQUISITION IS SUBJECT TO APPROVAL BY THE
COMPETITION COMMISSION AND THE FINANCIAL SERVICES BOARD.
ALL OTHER BUSINESS INITIATIVES CONTINUE TO PERFORM IN LINE WITH EXPECTATIONS.
THE GROUP"S BALANCE SHEET IS VERY SOUND WITH NO INTEREST-BEARING DEBT AND CASH
RESOURCES OF R493 MILLION. HEALTHY LIQUIDITY IS SUBSTANTIATED BY A CURRENT RATIO
OF 3.74:1 AND AN ACID TEST RATIO OF 3.70:1.
CASH GENERATED BY OPERATIONS AMOUNTED TO R139 MILLION AND CASH EQUIVALENT
EARNINGS PER SHARE AMOUNTED TO 37.01 CENTS.
STATUS OF PROPOSED ACQUISITION OF APLITEC BY NET1 UEPS TECHNOLOGIES, INC.
SHAREHOLDERS ARE REFERRED TO THE SENS ANNOUNCEMENT OF 31 DECEMBER 2003, WHERE
SHAREHOLDERS WERE ADVISED THAT ALL THE RESOLUTIONS RELATING TO THE DISPOSAL, THE
ADVANCE DISTRIBUTION, THE DELISTING AND THE VOLUNTARY WINDING-UP, AS WELL AS THE
OTHER RESOLUTIONS NECESSARY TO GIVE EFFECT THERETO, AS DESCRIBED IN THE CIRCULAR
TO APLITEC SHAREHOLDERS DATED 17 NOVEMBER 2003, WERE PASSED BY THE REQUISITE
MAJORITY OF APLITEC SHAREHOLDERS AT A GENERAL MEETING. ON 20 JANUARY 2004,
SHAREHOLDERS WERE ADVISED THAT THE OUTSTANDING REGULATORY AND OTHER SUSPENSIVE
CONDITIONS WERE ANTICIPATED TO BE FULFILLED DURING MARCH/APRIL 2004.
THE PROCESS TO OBTAIN THE NECESSARY REGULATORY APPROVAL, INCLUDING APPROVAL BY
THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION IS UNDER WAY AND ALL THE
NECESSARY FILINGS AND SUBMISSIONS HAVE BEEN MADE. SHAREHOLDERS ARE REMINDED THAT
THE PROPOSED TRANSACTIONS ARE SUBJECT TO AND CONDITIONAL UPON THE OUTSTANDING
REGULATORY AND OTHER OUTSTANDING SUSPENSIVE CONDITIONS BEING FULFILLED OR WAIVED
BY 31 MAY 2004. APLITEC SHAREHOLDERS WILL BE ADVISED OF THE FINAL DATES (MAILING
OF ELECTION CIRCULAR, ELECTION DATE, LAST DAY TO TRADE, RECORD DATE, FUNDS
TRANSFER DATE AND TERMINATION OF LISTING DATE) AS SOON AS THESE DATES CAN BE
ACCURATELY DETERMINED.
DIVIDEND
NO INTERIM DIVIDEND HAS BEEN DECLARED.
ON BEHALF OF THE BOARD
DR. SERGE BELAMANT HERMAN KOTZE
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
3 MARCH 2004
JOHANNESBURG
TRANSFER SECRETARIES SECRETARY AND REGISTERED OFFICE
ULTRA REGISTRARS (PTY) LTD LIGHT AND LIVINGSTONE FINANCIAL SERVICES CC
11 DIAGONAL STREET 3RD FLOOR, PALM GROVE
JOHANNESBURG 196 LOUIS BOTHA AVENUE
2001 HOUGHTON ESTATE, 2198
DIRECTORS : S C P BELAMANT**, H G KOTZE, J C LIVINGSTONE*, B J S HORE*, D G S
MULLER*
*NON-EXECUTIVE **FRENCH
Date: 03/03/2004 04:40:11 PM Produced by the JSE SENS Department
